Common handyman insurance claims

Handyman, handywoman, tradesperson, jack-of-all-trades. Whatever you choose to call yourself, a handyman works across different homes, shops and job sites, which means the risks change almost every day. Even simple tasks can lead to unexpected accidents or damage. Insurance claims in this space often follow familiar patterns and understanding them can help you manage your own risks more effectively.

These are some common claims we have observed across the handyperson industry.

1. Property damage

Property damage is a common type of claim as handymen frequently work inside or around clients’ properties, where there is a higher risk of accidental damage or injury. For example, a handyperson might accidentally break a client’s window, scratch flooring or damage wiring behind a wall. Some small mistakes can turn into expensive repairs, especially inside homes where replacement costs may run high.

Public Liability insurance may help cover the cost of accidental damage to a customer’s property.

Property damage real-world claim example

A gardener was hired by a client to mow their lawn. While the gardener was using the whipper snipper, a rock flew up and hit a back window of the house, causing it to crack.

As the gardener held Public Liability, their insurer paid the claim of $1,239 to cover the costs of the damaged window.

2. Water damage

Water damage occurs more often than people may expect. Water can spread quickly and may ruin cabinetry, flooring or electrical components. Some of these situations can become costly because the damage keeps growing until the water source is isolated. Claims involving water damage may also lead to extra work such as mould remediation or structural repairs.

Water damage real-world claim example

An electrician was engaged by a client to install solar panels at their home. However, after installing the solar panels, the electrician received a letter of demand from the client. The letter alleged that the electrician had installed the solar panels incorrectly and, after a cyclone that caused heavy rainfall, water leaked through the roof tiles and into the house cavity and through the sealant, causing extensive water damage.

Luckily, the electrician held Public Liability. Their insurer reviewed the supporting evidence and denied liability based on the findings that the weather event itself, not any fault of the electrician’s, had caused the water damage.

3. Theft or damage of tools and equipment

Tools are essential for handymen. Unfortunately, they are also attractive targets for theft. Break-ins to vehicles, sheds or job sites do happen. Sometimes thefts can occur during short breaks or while equipment is briefly left unattended. Expensive tools can also be damaged in the course of a day’s work through unforeseen circumstances.

Losing tools can disrupt work schedules and lead to replacement costs. Portable Equipment cover, when included in a Business Insurance Pack, may help with the repair or replacement of items that have been damaged or stolen.

Tool damage real-world claim example

A handyman was tasked with cutting down a decayed tree for a client. While cutting through a deteriorated limb, the tree limb prematurely snapped off – crushing the chainsaw the handyman was using.

As the handyman held Portable Equipment insurance, their insurer paid a total of $1,049 to replace the destroyed chainsaw. Without this insurance in place, the handyman would have had to purchase a brand new chainsaw out of pocket.

4. Bodily injury to others

Bodily injury claims arise when someone else is injured due to your work activities. This might involve a client tripping over equipment, a bystander being struck by a tool or a visitor entering a workspace without noticing hazards.

Public liability insurance is often relevant here because it may respond to claims from third parties who are injured. Injuries can lead to medical expenses, time off work and sometimes compensation demands, depending on the circumstances.

Injury to others real-world claim example

A contractor was engaged to replace a skylight at a two-storey residential property in Queensland. The works were issued on a priority basis but were delayed and not completed within the required timeframe.

Several months later, during a period of heavy rain, water leaked through the roof and skylight and onto an internal staircase. A tenant of the property slipped on the wet stairs and fell, suffering serious injuries.

The tenant brought a personal injury claim against the State of Queensland, which then issued a contribution notice to the contractor, alleging the delayed works contributed to the incident.

In the end, the matter proceeded to a compulsory conference and, as the contractor held Public Liability insurance, their insurer agreed to indemnify the contractor. The insurer incurred a total cost of $1,351,966. Of this, $600,000 was paid to the third party in compensation, with the remainder covering legal defence costs.

Third-party injury vs injuring yourself

A key distinction for tradespeople is the difference between injuring another person and injuring yourself. Public Liability insurance generally covers third party injury, meaning people other than you. If you are injured while working, that is not typically covered under a Public Liability policy.

Some handymen consider Personal Accident and Illness insurance to help cover loss of income if they cannot work due to an accidental injury or sickness. This is separate from liability cover and sits within personal risk planning rather than customer protection.

Personal injury real-world claim example

A plumber was involved in a motorcycle accident which resulted in serious spinal injuries, amongst other injuries.

Fortunately, the plumber held Personal Accident and Illness insurance. As a result of the accident, the claimant was unable to work for more than two years. This meant that weekly injury benefits were paid for the full benefit period of 104 weeks. Weekly payments of $1,000 per week were made for the first 12 months and then increased to $1,050 for the following 12 months.

What common claims say about everyday risks

These types of claims appear repeatedly because they reflect the everyday reality of handyman work. Jobs change from site to site, conditions aren’t always predictable, and even routine tasks can lead to unexpected outcomes.

Understanding how and why these claims occur can help you think ahead, identify potential risks earlier and take practical steps to reduce them. It also highlights where different types of insurance may come into play, so you can make informed decisions about protecting your work, your tools and the people around you as part of a broader risk management approach.